Trump says Intel has agreed to a deal for US to take 10% equity stake
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US President Donald Trump said on Aug 22 that the US would take a 10 per cent stake in struggling chipmaker Intel.
PHOTO: REUTERS
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- Trump announced a 10% US stake in Intel after CEO Tan's meeting, aiming to revitalise the struggling chipmaker.
- Intel faces challenges including a weak product roadmap and difficulty attracting customers to its foundry business.
- This move follows similar deals with Nvidia and MP Materials, reflecting Trump's national security approach.
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WASHINGTON - President Donald Trump said on Aug 22 the US would take a 10 per cent stake in Intel under a deal with the struggling chipmaker and is planning more such moves, the latest extraordinary intervention by the White House in corporate America.
An official announcement on the arrangement is expected later in the day, a source familiar with the matter said.
The development follows a meeting between chief executive officer Tan Lip-Bu and Mr Trump earlier this month that was sparked by Mr Trump’s demand for the Intel chief’s resignation
“He walked in wanting to keep his job and he ended up giving us US$10 billion (S$12.8 billion) for the United States,” Mr Trump said, on Aug 22.
Intel, whose shares rose more than 6 per cent, declined to comment.
The move follows a US$2 billion capital injection from SoftBank Group
Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product roadmap and challenges in attracting customers to its new factories.
Mr Trump, who met with Mr Tan on Aug 11, has taken an unprecedented approach to national security.
The US president has pushed for multibillion-dollar government tie-ups in semiconductors and rare earths, such as a pay-for-play deal with Nvidia and an arrangement with rare-earth producer MP Materials, to secure critical minerals.
Mr Tan, who took the top job at Intel in March, has been tasked to turn around the American chipmaking icon, which recorded an annual loss of US$18.8 billion in 2024 – its first such loss since 1986.
The company’s last fiscal year of positive adjusted free cash flow was 2021. REUTERS
